Company Title and CGT

A technical one - an area in Sydney only allows company titles for duplex homes. There's no real option to do it any other way (council) for this type of stock.

Appreciate the financing consequences and potential impacts on price, but curious to better understand the taxation consequences:

1. Is CGT exemption available on the main home for anyone who purchases a duplex (or shares in the company)?
2. Is CGT exemption available to those that build duplexes under a company title and live in one?

The CGT issue is explained this way. The landowner acquires an interest in a company (specific shares) rather than land itself. The shares are the CGT asset not land, the land technically never changes hands and is always owned by the company. The shareholders possess a right...One for Terry to explain.. Its similiar to a trust interest.

Owning shares does not limit CGT discounts. The concern you are referring to is really when a company owns land and the company sells for a profit. Its cannot pass a cap gain that is discounted to its shareholders. In the title issue the landowners would have no such concern as they are transferring shares - A CGT event.

The Main residence Exemption is available as Tax Law doesnt talk about title. It refers to an "ownership interest". You dont have to be named on title to have a CGT interest !! I reckon my Bank should pay CGT too !!